Promotion & Information Systems - Research Paper Example

Promotion & Information Systems Review ial “Principles of Marketing” The ial “Principles of Marketing” is successful in putting across why right pricing is important for marketing products/services successfully. Tutorial states price is one of the important ground for buyer and seller to meet and perform a transaction. When buyer perceives a good value for the money being spent he is willing to buy. On the other hand seller will try to maximize their profit by keeping the optimum price where they can generate maximum revenue utilizing full installed and production capacity of their operations.

Seller is compelled by both internal and external factors to decide on the price. External factors can be described as competition, political, environmental, and technological or any other external factors that are not in control of marketers. They have to constantly adjust with them with regard to their marketing plans and strategies; otherwise, it is likely that they may lose market shares, which may have a considerable impact on company’s revenue. Internal factors are those which are in marketer’s control like increasing production in units in an existing set up so as to utilize full manufacturing capacity and play with pricing part so that there is an increase in absolute profit of the company.

Here even reducing per unit price profit of the organization increases because numbers of the units sold are higher. These factors are in control of any marketer to a limited extent only to play with the pricing part of the product.Tutorial effectively teaches about 5-point process for setting the price. This process serves as a useful guide to set price of the product or service. However, finding right price is not an easy task and marketer has to make a lot of trial and error efforts finally to arrive at correct price.

Price setting process begins with marketing objectives. Tutorial effectively imparts understanding that how managing external factors are the key to marketer’s success. Bulk of the efforts and time for any marketer goes here. Proper management of external factors is crucial for meeting the marketing objectives. They provide opportunities and pose threats to the marketer. In order to respond effectively to external factors, marketer needs to carry out market research. Market research is an intensive and a long term process.

Market research is also carried out as one of the objective to arrive at right pricing for the product or services. One cannot set a perfect price with this tool but it can be taken as a guide to arrive at right pricing.Finally, all this leads us to marketing planning and formation of a strategy. The ultimate objective of any planning or strategy is to achieve company’s long term and short term objectives.Any marketing plan has the following points to consider.A) What is the mission of organization?B) What are the company’s long term and short term objectives?

They can be one or many.C) What is the marketing budget?Based on the above parameters, marketer will chalk out a proper marketing strategy and day-to-day tactical programs. Marketer will formulate a strategy to bring about the synergy with all available resources so as to achieve final objectives.Information System vis-a-vis Market PlanningBut in a large multi product, multi geographical territory of operations, data related to revenue generation, gross profit and realization of price per unit should come to the marketer instantaneously.

It means an effective information system is required to be in place.IT manager has to devise a system/program, which can generate above information for marketer to take necessary decisions from planning perspective. I would recommend IT manager to have the system in place, which can generate the following data.1. Registering all sales of all products on daily basis and their cumulative total.2. Revenue generated on daily, weekly and monthly basis.3. Price per unit realized on aggregate basis during the above period.4. Marketing expense report during the given period.

Finally, I would like to conclude that this tutorial has imparted a very good way of learning the essentials of pricing, and market planning. In short, tutorial has been successful in giving understanding of marketing, market planning and strategy in this form and this is surely a good way of learning indeed.References: 1. “Pricing Decisions.” Retrieved on 11/5/2010 from http://www.knowthis.com/principles-of-marketing-tutorials/pricing-decisions/ 2. “Setting Price Part.” Retrieved on 11/5/2010 from http://www.knowthis.com/principles-of-marketing-tutorials/setting-price-part-1/ 3.

“Managing External Forces.” Retrieved on 11/5/2010 from http://www.knowthis.com/principles-of-marketing-tutorials/managing-external-forces/ 4. “Marketing Planning and Strategy.” Retrieved on 11/5/2010 from http://www.knowthis.com/principles-of-marketing-tutorials/marketing-planning-and-strategy